Anheuser-Busch offers Canada barley contracts

By Roberta Rampton

WINNIPEG, Manitoba, Feb 11 (Reuters) - U.S. brewer Anheuser-Busch Cos Inc (BUD.N: Quote, Profile, Research) has offered a new 2008 malting barley contract spurned by Canadian maltsters and grain companies, the Canadian Wheat Board confirmed on Monday.

The brewer is the first to agree to offer farmers new "CashPlus" contracts based on sales made by the agency, which has a government-granted monopoly on western Canadian malting barley.

"The rather significant tonnage is almost full, so that would seem to indicate that farmers are eager to sign up for this program," said Maureen Fitzhenry, a CWB spokeswoman.

Canadian maltsters and grain companies have refused to participate in the program, saying it would not provide strong enough price signals to entice farmers to grow barley instead of other crops, and would be costly and cumbersome to use.

The agency hopes that will soon change, Fitzhenry said.

"We are talking right now to other companies and we do expect that more contracts will be available soon," she said.

Late on Friday, bids from Anheuser-Busch subsidiary BARI-Canada Inc. were posted on the Agri-ville.com Web site by contributors identifying themselves as farmers.

Anheuser-Busch was unable to comment on Monday.